What Today's $1 Billion Settlement Means for Toyota (NYSE: TM) Stock

10 Мар 2015 | Author: | No comments yet »

What Today’s $1 Billion Means for Toyota (NYSE: TM)

The U.S. Department of Justice is to announce a settlement today with Toyota Motor (NYSE: TM ) that would end a investigation into the automaker’s to disclose information regarding issues.

The settlement is expected to top $1 making it one of the largest fines paid by an automaker.

The investigation four years and dealt an unwanted acceleration issue in Toyota-made vehicles.

In 2010, the Highway Traffic Safety (NHTSA) attributed five to the acceleration issue, and according to the Department, Toyota made statements regarding vehicle problems.

The problem first gained attention in 2009 when an California Highway Patrolman and his were killed in an accident the man could not stop his Lexus. to reports the vehicle had been near 120 miles per hour at the of the accident.

Toyota blamed floor mats for trapping The automaker supported those with an NHTSA probe found no issues with the software of Toyota vehicles.

billion-dollar settlement however, the idea that Toyota did in release misleading safety

According to The Wall Street . the settlement has not technically been Regardless, Toyota officials are to move on from the ordeal.

Toyota has cooperated with the attorney’s office in this for more than four Toyota Spokeswoman Julie said in a statement. During time, we have made changes to become a more and customer-focused organization, and we are committed to improvements.

As Toyota moves from the safety investigation and the fine, here’s what’s for TM stock.

Settlement’s Impact on (NYSE: TM) Stock

Today’s isn’t the only dismal Toyota shareholders have in 2014.

In February, the automaker a recall on every third-generation the company has sold. That 1.9 million vehicles worldwide and in North America. The recall was for a glitch that shut the vehicle’s hybrid engine, while the car was in motion.

Shares dropped 2% that but bullish indicators remained at the

First, Toyota is the world’s automaker, having sold than 9.98 million worldwide in 2013. That was a gain from 2012. TM outsold second-place General Co. (NYSE: GM ) by 270,000 vehicles in

Second, growing demand in was expected to push Toyota higher. In January 2014, 2.2 vehicles were sold in up 6% from January 2013. The year 2013 saw a 14% increase in sales from 2012. If stands to profit from growth, it’s the world’s auto-seller, Toyota.

Toyota Fine-S

Today’s news takes of the luster off of those figures,

While TM was the top-selling automaker in its lead over rival GM by a wide margin. In 2012, TM GM by 460,000 vehicles. That was almost slashed in half in (GM has its own recall issues to worry however).


Investors have to be about this year’s having an impact on sales. For particularly those with today’s settlement news and recall is disconcerting.

The effect these issues on sales figures will go a way in determining TM’s share Toyota’s recent run has been even amid strong figures. Down sales won’t help.

Toyota was down 1% in morning trading and has lost more than 5% in the month. In the past six months, TM has slid more than

If TM stock continues to fall, may be a good buy-in point for investors. With a 52-week of $99.70 to $134.94, now is not the time to

Has the recent news out of Toyota your opinion of the automaker? Let us on Twitter @ moneymorning using

After reading this, be laughing at investors who are worried the next market sell-off. profiting today.

The Wall Street Journal:

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